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(b) On January 1, 2020, Pear Furniture borrowed $5,900,000 (face value) from Sinise Co, a major customer, through a zero-interestbearing note due in 4 years.

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(b) On January 1, 2020, Pear Furniture borrowed $5,900,000 (face value) from Sinise Co, a major customer, through a zero-interestbearing note due in 4 years. Because the note was zero-interest-bearing. Pearl Furniture agreed to sell furniture to this customer at lower than market price. A 10% rate of interest is normally charged on this type of loan. Prepare the journal entry to record this transaction. (Round diswers to 0 decimol ploces. es. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit occount titles are dutomaticolly indented when amount is entered. Do not indent manually) Determine the amount of interest expense to mport for 2020 . Round answr to o decimal ploces eg. 38,548.1 Interest expense to be reported for 2020

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